NasdaqCM:SMBK

Stock Analysis Report

Executive Summary

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, Florida, and Georgia.

Rewards

Trading at 35.8% below its fair value

Earnings are forecast to grow 4.25% per year

Earnings grew by 46.7% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has SmartFinancial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMBK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

SMBK

-1.0%

US Banks

0.5%

US Market


1 Year Return

5.7%

SMBK

10.6%

US Banks

20.3%

US Market

Return vs Industry: SMBK underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: SMBK underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

SMBKIndustryMarket
7 Day-1.0%-1.0%0.5%
30 Day-6.5%-1.2%2.0%
90 Day-4.0%0.4%9.4%
1 Year6.2%5.7%13.8%10.6%22.8%20.3%
3 Year-1.3%-1.7%23.5%14.6%50.1%40.4%
5 Yearn/a74.0%54.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is SmartFinancial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SmartFinancial undervalued compared to its fair value and its price relative to the market?

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMBK ($21.35) is trading below our estimate of fair value ($33.23)

Significantly Below Fair Value: SMBK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMBK is good value based on its PE Ratio (11.2x) compared to the Banks industry average (12.6x).

PE vs Market: SMBK is good value based on its PE Ratio (11.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SMBK is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: SMBK is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is SmartFinancial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMBK's forecast earnings growth (4.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SMBK's earnings (4.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: SMBK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMBK's revenue (12.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SMBK's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMBK's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has SmartFinancial performed over the past 5 years?

56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMBK has high quality earnings.

Growing Profit Margin: SMBK's current net profit margins (29.4%) are higher than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: SMBK's earnings have grown significantly by 56.8% per year over the past 5 years.

Accelerating Growth: SMBK's earnings growth over the past year (46.7%) is below its 5-year average (56.8% per year).

Earnings vs Industry: SMBK earnings growth over the past year (46.7%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: SMBK's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SmartFinancial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SMBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMBK's debt is covered by short term assets (assets are 2.8x debt).


Financial Institutions Analysis

Asset Level: SMBK's level of assets compared to its equity is low.

Allowance for Bad Loans: SMBK has a sufficient allowance for bad loans.

Low Risk Liabilities: SMBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: SMBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SMBK's loans are broadly funded by customer deposits.

Level of Bad Loans: SMBK has an appropriate level of bad loans (0.18%)


Next Steps

Dividend

What is SmartFinancial's current dividend yield, its reliability and sustainability?

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: SMBK's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SMBK's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SMBK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SMBK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (2.6%), SMBK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SMBK's dividends in 3 years are forecast to be thoroughly covered by earnings (10.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Billy Carroll (50yo)

4.5yrs

Tenure

US$612,171

Compensation

Mr. William Young Carroll, Jr., also known as Billy, serves as the President and Chief Executive Officer at SmartFinancial, Inc. He serves as the Chief Executive Officer and President at SmartBank. He serv ...


CEO Compensation Analysis

Compensation vs Market: Billy's total compensation ($USD612.17K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Billy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Carroll
President4.5yrsUS$612.17k0.92% $2.8m
Ronald Gorczynski
Executive VP & CFO0.8yrsno data0.039% $117.4k
Nathaniel Hughes
Executive Vice President of SmartFinancial Investment & Institutional Investor Relations0yrsUS$285.47k0.33% $985.5k
Jerry Lee
Executive VP & CCO10.1yrsUS$174.06kno data
Felicia Barbee
Controller4yrsno datano data
Gregory Davis
Executive VP & Chief Lending Officer of SmartBank0yrsUS$212.50k0.22% $651.8k
Rhett Jordan
Executive VP & Chief Credit Officer of SmartBank0yrsUS$443.45k0.090% $267.8k
Gary Petty
Executive VP & Chief Risk Officer of SmartBank0yrsUS$160.00k0.021% $61.9k
Kelley Fowler
Senior VP and Director of Marketing & Public Relations - SmartBank0yrsno datano data
Daniel Nichols
Senior VP0yrsUS$134.97kno data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: SMBK's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Carroll
President4.5yrsUS$612.17k0.92% $2.8m
Wesley Welborn
Chairman of the Board10.3yrsUS$404.78k0.78% $2.3m
Geoffrey Wolpert
Independent Director10.1yrsUS$53.00k1.39% $4.2m
William Carroll
Vice Chairman of the Board4.5yrsUS$377.00k0.20% $586.4k
Victor Barrett
Independent Director10.1yrsUS$68.00k1.23% $3.7m
Ted Miller
Independent Director10.1yrsUS$56.75k0.85% $2.5m
David Ogle
Lead Director0yrsUS$59.00k1.49% $4.5m
Keith Whaley
Independent Director10.1yrsUS$50.75k0.57% $1.7m
Monique Berke
Independent Director5.8yrsUS$55.25k0.068% $203.1k
Steven Tucker
Independent Director2.3yrsUS$47.00k0.36% $1.1m

10.1yrs

Average Tenure

62yo

Average Age

Experienced Board: SMBK's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SMBK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.3%.


Top Shareholders

Company Information

SmartFinancial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SmartFinancial, Inc.
  • Ticker: SMBK
  • Exchange: NasdaqCM
  • Founded: 1983
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$299.076m
  • Shares outstanding: 14.01m
  • Website: https://www.smartfinancialinc.com

Number of Employees


Location

  • SmartFinancial, Inc.
  • 5401 Kingston Pike
  • Suite 600
  • Knoxville
  • Tennessee
  • 37919
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMBKNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2015

Biography

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, Florida, and Georgia. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, and construction and land development loans; commercial and industrial loans, including commercial, financial, and agricultural loans; and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2018, it operated through 29 full-service branches located in Tennessee, Alabama, and Florida; and 2 loan production offices, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. was incorporated in 1983 and is headquartered in Knoxville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:57
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.